Currency Buzz: Dollar Index Gains Traction On Safe Haven Demand

25 Apr 2022 , 11:39 AM

The American currency continued to gain traction in early Asia on Monday as markets are now recalibrating for a series of aggressive interest rate hikes from the US Federal Reserve. Federal Reserve Chair Jerome Powell indicated that a half-point interest rate increase ?will be on the table? when the Fed meets in May to approve the next in what is expected to be a series of rate hikes this year. The US Dollar Index, which tracks the greenback against a basket of other currencies climbed to 101.37 on Monday morning, after a two-year peak of 101.33 hit on Friday. Although benchmark treasury yields paused rally, dollar continued to extend advance as investors opted for safe haven amid rising China Covid cases and ensuing strict COVID-19 measures and lockdowns across the country, worsening economic growth outlook.

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